Simulations Plus, Inc. · NASDAQ:SLP
Simulations Plus — FY2020 Earnings Presentation
30 slides from Simulations Plus's earnings presentation, Nov 17, 2020
Slide 1: Q4 and Fiscal Year 2020 Investor Conference Call
Q4 and Fiscal Year 2020 Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO November 16, 2020 (NASDAQ:SLP)
Slide 2: Safe Harbor Statement
2 With the exception of historical information, the matters discussed in this presentation are forward - looking statements that involve a number of risks and uncertainties . The actual results of the Company could differ significantly from those statements . Factors that could cause or contribute t
Slide 3: FY2020 Highlights
FY2020 Highlights : Achieved step up in revenue growth to target of 15 - 20% growth despite COVID - 19 disruption; Completed Lixoft acquisition in Q3; Completed capital raise in Q4; Improved portfolio of software offerings through internal development, collaborations with clients and regulatory agen
Slide 4: Strong Revenue Performance
Strong Revenue Performance (in millions) 4 $29.7 $34.0 $41.6 FY2018 FY2019 FY2020 3 YR CAGR 19% UP 22% FY2020
Slide 5: Revenue by Source
$17.0 $12.7 $29.7 $18.5 $15.5 $34.0 $21.6 $20.0 $41.6 Software Consulting Total FY2018 FY2019 FY2020 30% Growth 22% Growth Revenue by Source (in millions) 5 16% Growth
Slide 6: FY20Q4 Revenue
FY20Q4 Revenue (in millions) Overall - 19% growth (7% organic) Software – 24% growth (Flat organic) • Renewal rate impacted by several site consolidations • YOY growth rate comparison impacted by FY19 renewals pushed from Q3 to Q4 – FY19 sequential Q3:Q4 growth: 4%:17% – FY20 sequential Q3:Q4 growth
Slide 7: Revenue Breakdown
48% 52% Consulting Software Revenue Breakdown Software FY2020 Total Revenue * Includes five months of revenue recorded post acquisition 7 34% 10% 4% 2% 2% GastroPlus ADMET Predictor Monolix Suite* Other Software DILIsym Software Products as % of Total Revenues
Slide 8: Software Product Highlights
Software Product Highlights • GastroPlus; PBPK modeling platform; Collaborations; GastroPlus 9.8 released in October; ADMET Predictor; – ML modeling platform – APX Œ released in September – AI - Driven Drug Design (AIDD) Module; Monolix Suite; Pop PK/PD modeling platform; Monolix Suite 2020R1 releas
Slide 9: Software Renewal Rates
Software Renewal Rates Q4 Trend FY Trend 9 92% 93% 93% 87% 85% 89% FY2018 FY2019 FY2020 Fees Accounts 91% 93% 88% 86% 86% 93% 4Q18 4Q19 4Q20 Fees Accounts
Slide 10: New Software Customers
New Software Customers Q4 Trend 7 20 10 13 13 14 20 33 24 4Q18 4Q19 4Q20 Commercial Non-profit Total FY Trend 37 46 49 39 54 64 76 100 113 FY2018 FY2019 FY2020 Commercial Non-profit Total
Slide 11: Commercial Software Companies
11 Commercial Software Companies ($’s in millions) $16.1 $17.6 $20.4 148 159 184 FY2018 FY2019 FY2020 Software License Revenue Revenue Companies 48 53 74 FY2018 FY2019 FY2020 $100K+ Companies
Slide 12: FY20 Consulting Business
48% 52% Consulting Software FY20 Consulting Business Total Revenue 12 Consulting Offerings as % of Total Revenues 10% 15% 23% PBPK QSP/QST PKPD
Slide 13: Consulting Business Highlights
Consulting Business Highlights • Recent Client Success – NDA for Pexidartinib – FDA approval of Ubrogepant – OEHHA review of Acetaminophen • New Services – Regulatory Strategies – COVID Strategies • Capacity – 22% increase in FY20 13
Slide 14: Consulting Revenue Sources
Consulting Revenue Sources ($’s in millions) 14 $7.0 $3.4 $2.3 $8.0 $4.3 $3.1 $9.9 $6.1 $4.0 PKPD QSP/QST PBPK Consulting Revenue by Type FY2018 FY2019 FY2020 63 39 69 85 42 77 117 39 97 PKPD QSP/QST PBPK Projects FY2018 FY2019 FY2020
Slide 15: Backlog
Backlog (in millions) 15 $1.8 $4.9 $1.1 $7.8 $2.9 $6.7 $1.5 $11.1 $3.8 $5.5 $1.2 $10.5 QSP/QST PKPD PBPK Total FY2018 FY2019 FY2020
Slide 16: FY Outlook
FY 21 Outlook • Maintain organic growth outlook in 15 - 20% range – Monolix Suite growth delivers an incremental 3 - 5% growth – Additional FY21 acquisitions would be incremental • Software growth FY20: 16% FY21: 20 - 25% – GastroPlus – New 9.8 release with introduction in FY21 of GPX – ADMET Predic
Slide 17: Financial Results
Financial Results
Slide 18: Income Statement: 4QFY20 vs 4QFY19
18 Income Statement: 4QFY20 Vs 4QFY19 (in millions) Note: Some numbers may not foot due to rounding. 4QFY20 % of Rev 4QFY19 % of Rev Net sales $ 9.5 100% $ 8.0 100% Revenue Growth 19% 20% Gross profit 6.9 72% 5.7 71% SG&A $ 3.7 39% $ 3.2 40% R&D 0.9 10% 0.6 8% Total operating exp 4.7 49% 3.8 47% Inc
Slide 19: Income Statement: 12moFY20 vs 12moFY19
19 Income Statement: 12moFY20 Vs 12MoFY19 (in millions) Note: Some numbers may not foot due to rounding. FY20 SG&A includes $1.4M of acquisition related costs. FY20 % of Rev FY19 % of Rev Net sales $ 41.6 100% $ 34.0 100% Revenue Growth 22.4% 14.5% Gross profit 30.9 74% 24.9 73% SG&A $ 16.4 39% 11.8
Slide 20: Revenues: Fiscal Quarter
20 Revenues : Fiscal Quarter (in millions) $7.1 $7.4 $8.6 $6.7 $7.5 $8.5 $9.9 $8.0 $9.4 $10.3 $12.3 $9.5 Q1 Q2 Q3 Q4 FY2018 FY2019 FY2020
Slide 21: EBITDA: Fiscal Quarter
21 EBITDA : Fiscal Quarter (in millions) $3.2 $3.1 $4.1 $2.6 $2.8 $3.4 $4.6 $2.7 $3.4 $3.5 $4.6 $2.9 Q1 Q2 Q3 Q4 FY2018 FY2019 FY2020
Slide 22: Average Revenue per Customer
Average Revenue per Customer (in 1,000’s) Note: Software revenue per customer excludes academic and non - profit customers 22 $108.7 $110.6 $110.8 $151.8 $161.8 $203.1 FY2018 FY2019 FY2020 Software Consulting
Slide 23: Margins Deliver Steady EPS Growth
Margins Deliver Steady EPS Growth * Pro forma non - GAAP numbers 23 81% 82% 85% 63% 63% 63% 73% 73% 74% FY2018 FY2019 FY2020 Gross Profit % Software Consulting Total $0.50 $0.48 $0.50 $0.42 $0.48 $0.56 FY2018 FY2019 FY2020 EPS Growth Over Time* EPS (diluted) as reported Proforma EPS
Slide 24: Revenue by Region – FY2020
Revenue by Region – FY2020 24 64% 66% 71% 18% 17% 14% 18% 17% 15% FY2018 FY2019 FY2020 Americas Europe Asia
Slide 25: Cash Activity
Cash Activity (in millions) 25 $9.4 $11.4 $116.0 FY2018 FY2019 FY2020 Cash and Investments $4.2 $4.2 $4.3 FY2018 FY2019 FY2020 Dividends $9.3 $11.6 $10.9 FY2018 FY2019 FY2020 Cash flow from operations
Slide 26: Headcount
Headcount 26 FY2018 FY2019 FY2020 Software 29 32 39 Consulting 36 46 56 Sales and Marketing 6 7 8 Other 23 26 34 Total 94 111 137
Slide 27: Selected Balance Sheet Items
27 Selected Balance Sheet Items (in millions, except where indicated) August 31, 2020 August 31, 2019 Cash and short - term investments $ 116.0 $ 11.4 Total current assets 129.1 21.2 Total assets 168.4 45.2 Current liabilities 5.5 4.8 Long - term liabilities 6.9 2.7 Total liabilities 12.4 7.5 Shareh
Slide 28: Conclusion
Conclusion Tremendous year for SLP!; Focused efforts succeeded in moving the organic growth rate to 15 - 20% target; We added to the SLP family with the acquisition of Lixoft, a significant addition to our software portfolio and an addition of talented scientific staff to our organization; We positi
Slide 29: Selected Financial Information
Selected Financial Information Nasdaq SLP Cash and short - term investments $116 million Borrowed Debt Outstanding $0.0 Market Capitalization (a/o 11/13/20) $ 1.4B Fully Diluted Shares Outstanding FY2020 18.5M Average Daily Trading Volume (current 30 day - a/o 11/13/20) ~204,000 29
Slide 30: Thank you!
30 Thank you! https://www.linkedin.com/company/simulations - plus https://www.linkedin.com/company/cognigen https://www.linkedin.com/company/dilisym https://www.linkedin.com/company/lixoft/